ENERGY EFFIENCY FOR SUSTAINABLE HOTEL

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ENERGY EFFIENCY FOR SUSTAINABLE HOTEL Powered By Docstoc
					Yuyun Ismawati
SUSTAINABLE HOTEL:
 Triple Bottom Line

            Economic




   Social          Environment



                                 2
HOTEL, ELECTRICITY AND ENERGY
 Hotels are large
 consumers of
 electricity and energy

 Hotel face increasing
 costs to provide a
 high quality of
 service to guests
                                3
 HOTEL, ELECTRICITY AND ENERGY......
 Most of Bali’s electricity is         “Out of that 70 percent, some 35
  supplied by 27 diesel power              percent is utilized to power
                                          hotels in the Nusa Dua area”,
  generating plants located all over
  Bali, the remaining 40% comes        Wayan Redika, Public Relation of PLN
  from coal power plants in East              Distribusi Bali, 2007
  Java
 Most of this supply is absorbed by
  hotels in the Badung Regency and
  Denpasar City
 In addition, the energy efficiency
  of buildings is often poor

                                                                           4
5
STUDY REVEALED1
 On energy conservation and efficiency, hotel operators generally
  recognize the cost reduction potential of energy conservation
  measures.
 However, many of these potentials have not been implemented
  due to a number of barriers such as:
    Lack of information distribution regarding Energy Conservation
     Opportunities (ECOs), energy efficient equipment and services, and
     energy management practices and projects that actually
     demonstrate the financial benefit of energy efficiency measures
    Chief engineers have limited capability in identifying and further
     communicating the financial benefit of energy conservation
     measures to top hotel management
    Limited number of institutions who can provide necessary support
     in financing the investment for energy efficiency projects
    No provisions of incentives such as tax credits specifically intended
     for energy efficiency measures
1Retno Gumilang Dewi, The Status of Energy Efficiency Projects in the Indonesian Hotel Industry, The Center
for Research on Material and Energy, Bandung Institute of Technology, March 2003                         6
STUDY REVEALED......
 Many businesses are beginning to recognize
  financial incentives to undertake energy
  conservation measures following sharp
  increases in energy prices in the Indonesia
 However, to change this “interest” to a “desire”
  for change, staff training to conduct energy
  audits and cost benefit analysis of energy
  efficiency is required
 “Application” would only be widespread when
  projects can actually demonstrate the cost
  benefit of energy efficiency measures
                                                     7
ANOTHER STUDY REVEALED2
 The latest study on hotels’ contribution to global
  warming showed that lighting, eletricity, energy
  accounted for 70% of hotels’ contribution, compared to
  water 12% and waste 65%
 Data from the Bali office of state electricity company,
  PLN, reveals that hotels – especially in Badung regency
  and Denpasar city -- consume 70% of the total
  electricity supply, which reaches 439 MW during peak
  hours
 Nusa Dua resort area, the venue of the UN climate
  conference, alone consumes > 1/3 of the power
  allocated for the hotels
2Greenpeace   Study on Climate Change and Hotels Contribution, Dec 2007
                                                                          8
 MINIMUM STANDARDS TOWARDS A
 SUSTAINABLE HOTEL3
     1. Policy and Framework
     2. Staff Training and Awareness
     3. Environmental Management
     4. Purchasing
     5. People and Communities
     6. Destination Protection

3 Going Green, Minimum Standards Towards a Sustainable Hotel, International Tourism Partnership
                                                                                                  9
MINIMUM STANDARDS TOWARDS A SUSTAINABLE
HOTEL...............
1.   Policy and Framework
        Committment from everyone, starts from the top
        Designate responsible persons
        Set up ‘Green Team’
        Setup indicators to measure accomplishments
        Draw business policy
2.   Staff Training and Awareness
        Launch/introduce the program to staff
        Maintain staff awareness
        Encourage staff motivation
        Include the program in every staff introduction
        Communicate the results progress
                                                           10
MINIMUM STANDARDS TOWARDS A SUSTAINABLE
HOTEL...............
3. Environmental Management
    Assess your current environmental impact
    List possible mitigation and management alternatives
    Install necessary control measures such as water meters and
     monitor your program
    Set improvement target
    Work with others
    Inform guest, vendors and local stakeholders


4. Purchasing
      Work with suppliers, vendors to green your chain
      Inform them about your program


                                                                   11
12
     MINIMUM STANDARDS TOWARDS A SUSTAINABLE
     HOTEL...............

5.    People and Communities
      √ Look at the world outside your hotel
        and how you can take a more
        responsible, leadership role


6.    Destination Protection
      √ Maintain a ‘sense of place’ that
        supports the geographical character
        of a place—its environment, culture,
        heritage, aesthetics, and the well-
        being of its citizens


                                               13
GETTING THE MOST OF YOUR ENERGY
EFFICIENCY PROGRAM                                         4


                                                         In a typical hotel, lighting, air
                                                               conditioning, and water
 Air Conditioner                                              heating represent up to 70
                                                               percent of total energy use,
                                                               making those systems the best
 Lighting                                                     targets for energy efficiency
                                                               programs

 Boiler                                                 Many full-service hotels can
                                                               benefit from quick no- and low-
                                                               cost solutions for energy
                                                               efficiency.

4 Guidebook   on Energy Efficiency for Hotels, Pelangi, 2005
                                                                                               14
GETTING THE MOST OF YOUR ENERGY EFFICIENCY
PROGRAM........
 In general, prior to 1997, energy would constitute 10% of a
  hotel’s total expenditure. This figure has now risen to
  approximately 25%
 Energy efficiency is a valuable resource that creates a win-
  win solution on multiple fronts
 It saves energy consumers, money, increases comfort,
  protects the environment, and enhances the economy
 When energy efficiency is combined with smart energy
  practices — like turning off lights, air conditioners, and
  televisions that are not in use — all of the benefits above are
  compounded

                                                                15
16
THE LIGHTING SYSTEM
                                                    STANDARD
                     AREA                         REQUIREMENT
                                                   (lument/m2)
              Public area, garden                      30

Corridor, rarely visited warehouse, restaurant         75
  Office, lobby lift, stairs, active warehouse,
                                                      150
                  parking area
   Conventional hall, office, shops, cashier          300

      Bedrooms, laundry room, kitchen               300 - 400

                                                                 17
THE LIGHTING SYSTEM....




                          18
THE LIGHTING SYSTEM....




                          19
           COMPARISON BETWEEN ILBs and CFLs
                                                               Compact
                                      Incandescent Light
              ITEM          UNIT                           Fluorescent Light
                                         Bulbs (ILBs)
                                                             Bulbs (CFLs)
Power                        Watt            40                   11
Price                        Rp             5,000               25,000
Lifetime                     Hour            750                10,000
Monthly Expenditure                          2.5                  33

Daily Usage                Hour/day          10                   10
Electricity Cost per kWh   Rp/kWh            560                 560

Total Electricity Cost     Rp/month         6,720               1,848

For one year period

Electricity Cost           Rp/year         80,640               22,176
Lamp Investment Cost       Rp/year         24,000               25,000

Total Costs                                104,640              47,176         20
IMPORTANT NOTE ABOUT CFLs
 The amount of mercury in a CFL or
  other fluorescent light bulb typically
  ranges between 3.5 milligrams to 15
  milligrams
 The amount of mercury varies
  depending on the type of fluorescent
  light bulb, the company that makes the
  light bulb, and when the fluorescent light
  bulb was made
 An average CFL contains 5 milligrams or
  about 1/100th of the amount of mercury
  found in a mercury fever thermometer
 Careful attention need to be taken when
  CFLs broken                                  21
 BOILER
 A boiler is a vessel that
 functions as a water heater

 The fuel used to heat boilers
 can be either gas, oil, or coal

 In Indonesia, most of fuel used
 for boiler is diesel fuel

                                    22
SOME TIPS TO MAINTAIN THE
EFFICIENCY OF A BOILER
 Perform regular maintenance.
 Use automatic controls to appropriately operate the boiler.
 Ensure that control systems are maintenance properly. Improper
  operation of the control system can result in an inefficiency of up to
  20%.
 Properly insulate the system. Use insulated expansion tanks and heat
  exchangers.
 Prevent scale accumulation in boiler tubes, which impedes flow and
  heat transfer, through effective water treatment. This also minimizes
  boiler blowdown and results in potential efficiency gains of 10-12%.
 Inspect steam distribution systems. Leaks, faulty valves, faulty steam
  traps, etc. can be costly. This could result in potential energy savings
  of up to 5%.

                                                                       23
SOME TIPS TO MAINTAIN THE EFFICIENCY OF A
BOILER.........
 Regularly cleaning strainers upstream of steam traps to prevent
    particle accumulation can yield efficiency gains of 10-15%
   Insulating your pipes, valves, fittings, etc. can yield energy
    savings of 2-5 %
   Minimize surplus combustion air by adjusting fans, dampers,
    seals and optimizing over- fire draft controls. Reducing air and
    oxygen by 15 percent and 1.5%, respectively, can provide a 1%
    gain in efficiency
   Lower the water temperature of boilers to reduce short-cycle
    convective and radiant heat losses. A potential increase in
    efficiency of 1% is gained by reducing stack temperatures by
    4.5oC
   Consider replacing your boiler if it is already more than 25 years
    old. Newer boilers are usually designed with highly efficient
    and cleaner technology, which can reduce fuel consumption by
    up to 30% or even more
                                                                         24
25
          INVESTMENT IN CDM PROJECT
                              return on investment
                                                                              sales
                            financing of baseline                           revenues
                                                           BAU project                    Baseline product
                              (project underlying          CDM project
                                                          (Diesel Power
    Investor                                                                                   (kWh)
                                  investment)            (Hybrid Supply:
                                                             Station)
                                                         Diesel- & Wind    generates
                     additional financing (Transaction   power station)
                       cost & CDM implementation                                                  CER
 CDM-Investor                                                              Generates ~
                               investment)
                                                                           M & V costs
                            transfer of CER
                        (for own commitment
                          or carbon market)                                                Buyer of CER is
                                                                                         reliable and pays in
                                                    Technological
                                                                                           hard currency ~
As buyer of CER                                        change:
                                                                                             increase the
As investor (to be                                  CO2 reduction                          bankable of the
 involved in the                                                                              project (IRR
investment part)                   To adjust the main project, or to build                     increase)
                                 something new, or to turn the main project
                                             into a CDM project
                  PROJECT CASH FLOW
$



                          CERs


                         Project
                        revenues
Underlying       O&M
investment /
Infrastructure

                 Year
CDM Project
development
                             CARBON PRICES




                 Self Claiming   Claim Verified by   Future    Future    Real Certified
                    Project           others         Project   Project   ER (from EB)
Source: World Bank, 2006
         WHAT IS “CARBON PRICE OR CER”?
                            Price without risk

                              Registration risk

                                  Delivery risk

              CER International Transfer risk

                                Price with risk

                         Transactional margin

                                CER final price

 Carbon price in the contract (ERPA) is not CER final price: that should be consider as “price
  without risk”
 Price without risk: “the price of fruit at its tree even where the tree is no planted yet”
 CER final price: “the fruit price in nice packaging, placed at the supermarket, ready to be
  consumed”
       CDM FINANCIAL REQUIREMENT
Documentation costs      US$ 20,000 – $50,000, up to
                         $100,000 with new methodology
Validation costs         $8,000 - $15,000
CDM Project              Depend on the project type
Implementation Costs     (renewable energy project)
Underlying investments   Depend on the project
Verification costs       $5,000 – $10,000
Registration costs       $5,000 - $30,000
                         (depend on the project)
                       CDM FACILITIES
                               NL     DK     JP     WB      ADB      S    I       P

Documentation costs                                                        

Validation costs                                                           

CDM Project                                                                
Implementation Costs

Underlying investments                                                     


Verification costs                                                         

Registration costs                                                         

Purchase the CERs                                                         
   NL = Netherland, DK = Denmark, JP = Japan, WB = World Bank, ADB = Asian
  Development Bank, S = CDM private investors/developers, I = Investment Banks,
                             P = Private Company
           CDM PROJECT CYCLE
Tonnes     Baseline scenario (emissions without the CDM project)
 of CO2
per year

                              Emission reductions


                  Project scenario (emissions with the CDM project)




   2006-2007       2008        2010       2012        2014          2016

  Validation of
    baseline                  Verification of emission reductions
LEGAL ISSUES OF CDM PROJECT ACTIVITIES IN
             ENERGY SECTOR
     Classification of sub-categories of CDM project activities
 SIMPLE CALCULATION OF EMISSION
REDUCTION FROM ENERGY EFFICIENCY
50.000 Lighting-points                         27.000     Rp/lamp
        Investment cost               1.350.000.000          Rp
                                              150.000       US$
  100
        Watt ILBs                              12.958   ton CO2/year

    23 Watt CFLs                                2.980   ton CO2/year
            Emission Reduction                  9.977   ton CO2/year


                    Carbon price          $     10,00     per tCO2
                               CER        $    99.773     per year
                 Crediting period                  5       years
                          Total CER   $       698.409                  34
   PROJECTS ELIGIBLE FOR CDM SCHEME IN INDONESIA




Main issues: electricity generation and selling, renewable energy, energy efficiency, recovery and
                                  utilization of gas from oil wells
          OVERVIEW ON 14 MULTILATERAL FUNDS
Name of Fund                                 Public         Private         reseller
Bio Carbon Fund*                                X               X
Climate Change Capital Carbon Fund                              X              x
Community Development Carbon Fund*              X               X
European Carbon Fund                                        X (banks)          X
FE Global-Asia Clean Energy Services Fund    X (ADB)            X            mainly
Greenhouse Gas – Credit Aggregation Pool                        x
ICECAP Carbon Portfolio                                         x            partly
KfW Carbon Fund                                 (x)             X
Merzbach Carbon Financing                                       X            partly
Multilateral Carbon Credit Fund                 X               X
                                            (EBRD, EIB)
Private Energy Market Fund                                      x              x
Prototype Carbon Fund*                          X               X
Trading Emissions Plc                                          X            reseller
                                                          (comp., indiv.)
Umbrella Carbon Facility*                       X               x
  * World Bank
FUNDS WITH GOVERNMENT INVESTORS
  World Bank
    Prototype Carbon Fund (veteran)
    Community Development Carbon Fund (community benefits,
     SSP, regional portfolio)
    Bio Carbon Fund (forest, agricultural, co-benefits)
    Umbrella Carbon Facility (> 10 mio tons CERs (HFC 23))
    (also Bilaterals: Italian Carbon Fund, Netherlands CDM Facility,
     Netherlands European Carbon Facility, Danish Carbon Fund, Spanish
     Carbon Fund)


  Others
    KfW Carbon Fund
    Multilateral Carbon Credit Fund (EBRD, EIB): under development
  PRIVATE FUNDS
        Fund                        Management                       Investor            Projects
Climate Change Capital    Climate Change Capital (merchant-      various investors    > 500 000 t/a
Carbon Fund               banking group) (UK)
European Carbon Fund      IXIS Environ. & Infrastructur (bank)   European banks,      large project
                          (EU)
Greenhouse Gas –          Natsource                              large companies      diversified
Credit Aggregation Pool   (emisisons business) (USA)
(GG-CAP)
FE Global-Asia Clean      FE Clean Energy Group (USA)            ADB and other        In Asia only.
Energy Services Fund      (private equity fund manager)          banks & comp.
ICECAP Carbon Portfolio   ICECAP Ltd,                            companies            For EU-ETS
                          Fund manager (UK)                                           market
Private Energy Market     PEMF (investment manager) (SF)         European and Asian   Energy, partly
Fund                                                             investors            for CDM
Trading Emissions Plc     Trading Emissions (company with        anyone               > 50 000 t/a
                          shares) UK
THE FUTURE OF BALI AND US
 Foreign tourist arrivals to Indonesia between 2005 and
  2009 are projected to reach 10 million per year with
  spending amounting to $10billion
 Green Globe Certification, Energy Efficient award, Tri-
  Hite Karana, Natural Guide recommendation, Eco-hotel
  rating and opportunities to get carbon credits on
  Voluntary Emission Reductions from the energy sector
  is possible
 Retrofitting and installing energy efficient measures, or
  increasing the use of renewable energy sources
  replacing fossil fuel generators are now needed
                                                              39
THE FUTURE OF BALI AND US.....
 Considering the island’s resources and carrying
  capacity, the industry needs to set benchmarks,
  especially for the provision and more efficient public
  services such as public transport, water, electricity,
  solid waste management and waste water treatment to
 mitigate the potential impact and anticipate future
 scenarios

 For a sustainable future of the island and its tourism
  industry, there is a need to shift the tourism strategy
  and orientation in Bali to responsible tourism
                                                            40
       Thank you
For your kind attention …
             YUYUN ISMAWATI

                Mandalawangi No.5
            Jalan Tegal Wangi - Sesetan
         DENPASAR 80223 – Bali, Indonesia
             Tlp/Fax 0361 – 233 520
                      0361 – 743 5796
 Email: yuyun@lead.or.id, balifokus@balifokus.or.id
           URL:http://www.balifokus.org

				
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